Askrindo Earns IDR 917 Billion Profit In The Third Quarter 2021

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - PT Asuransi Kredit Indonesia (Askrindo), a member of the insurance and guarantee BUMN holding, recorded earnings before tax as of the third quarter of 2021 of IDR 917 billion. Last year, Askrindo's full year performance in 2020 was Rp1.11 trillion.

Askrindo President Director Priyastomo said his party was optimistic that Askrindo could anticipate the dynamics of the business world and macroeconomic turmoil that occurred during the COVID-19 pandemic.

"This good business performance is influenced by commitment, various efforts and continuous improvement by management and all levels of employees," he said in an official statement, quoted Monday, December 6.

Askrindo's Gross Premium in three years continues to grow positively, from Rp. 5.89 trillion in 2019 to Rp. 6.42 trillion in 2020, and until the third quarter of 2021 it has reached Rp.4.77 trillion. Premium growth was supported by business activities (people's business credit) KUR and working capital credit for the national economic recovery (KMK PEN) which accounted for 84 percent during this period.

Underwriting results increased from Rp854 billion in 2019, to Rp2.02 trillion in 2020, and until the third quarter of 2021 had reached Rp1.51 trillion.

"This relatively good underwriting result shows that management's efforts can maintain good acceptance quality, in addition to applying the principle of prudence in every line of business and being conservative in calculating reserves, both premium reserves and technical reserves," he added.

Meanwhile, the number of underwriting expenses has tended to decrease in the last 2 years. To be precise, from IDR 2.72 trillion in 2019, to IDR 1.80 trillion in 2020, and in the third quarter of 2021 it was IDR 1.27 trillion.

Priyastomo added that efforts to maintain the quality of acceptances were also followed by operational cost control and efficiency, especially the operating expense component which was only Rp560 billion in the third quarter of 2021. Better than the original Rp1.00 trillion in 2019 and Rp699 billion in 2020.

Meanwhile, the other expense component also continued to decline from Rp. 394 billion in 2019, to Rp. 302 billion in 2020, and by Rp. 151 billion in the third quarter of 2021. In terms of non-operational income from subrogation collection (recoveries) were also encouraged. Most recently, it reached IDR 586 billion or better than the last two years, namely IDR 599 billion in 2019 and IDR 533 billion in 2020.

"Total assets grew by 12 percent from IDR 19.17 trillion in 2019 to IDR 22.07 trillion in 2020 and in the third quarter of 2021 it reached IDR 28.56 trillion," he said.

Meanwhile, in terms of health conditions, Askrindo's risk based capital (RBC) figure also increased from 345.74 percent in 2019 to 403.20 percent in 2020; and now reaches 588 percent.

The Return of Equity (ROE) ratio also showed an increase in the third quarter of 2021 by 8 percent, compared to last year's 6 percent, but slightly decreased compared to the same period in 2019 of 9 percent. Meanwhile, the Return on Assets (ROA) ratio did not change at 3 percent.